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Jul 5th 2018

4 Tips for Selling Private Label on Amazon

Selling private label on Amazon can be a great way to earn steady profits as a physical product business. With the dog-eat-dog competition out there, it’s easy for your product to get overlooked. These tips will help your Amazon listings stand out and keep your store growing.

Encourage Reviews

Online surveys found that customer reviews are a crucial factor in online sales. 84% of customers said that they “trust online reviews as much as a personal recommendation.” Encouraging positive customer reviews is vital to selling your products on Amazon.

It’s believed that reviews play a role in the A9 algorithm for rankings.

Reviews play a crucial role for customers to decide if they want to buy a product. Many Amazon buyers head directly to the reviews to get a sense of the good and bad before making a purchase decision. If there is an issue that isn’t getting resolved it could scare off business. So it’s important to keep this as high as possible.

Follow up on customer issues and resolve them as best you can. Communicate with customers and invite them to share their experience. The best way to get positive reviews is to make sure that customers have a positive experience.

Competitive Pricing

As mentioned earlier, pricing is a key factor when selling products on Amazon. Customers often make their decision to buy based on the price of the product plus shipping costs. So it’s best to price your product in line with your competition’s.

Do competitive research and find out exactly what your others are charging. If your product is different than what your competition has, there may be room to charge a higher price. It’s better to offer this added value to your customers at the same price as competitors and get more sales.

Some sellers on Amazon try offering your product at a cost lower than the competition. If the margins allow you to be the lowest cost option, this can increase your business, but be careful. Low-cost products can send a signal that your product is of low quality.

The best way to keep your products priced right is to continually assess your cost vs quality. You want to rigorously vet your manufacturers. How transparent is your manufacturer? Do you know where they source materials? What industry certifications they have? Guarantees they give? You want to make sure their standards are high, so you can compete at your price point.

Competitive Research

Competition on Amazon comes from all over the world and is intense. Competitors may be a single-person operation or a multinational corporation. It is important to keep track of what your competitors are doing to reach their customers.

A lot of this will come down to how unique your product is. Amazon shoppers are thrifty. An increasing number of shoppers search for products based on price and nothing else. If you’re unable to offer your product at a price below the competition, try to show why your product is better. Try not to price your product too far from the competition.

If your product offers unique solutions do your best to highlight these features. Offer customers unique benefits and make your product stand out from the crowd. That will allow you to sell at a higher price point (if you can convince buyers that the value is worth the price).

Checking reviews of your competition (both positive and negative) is a powerful form of competitive research. This can give you a tremendous amount of insight into market opportunities. What is the competition doing right? What are they doing wrong? What need exists that is not being filled? Knowing the real concerns of customers can inform your product development & marketing decisions. You can use the insights from reviews to better serve your target market.

[Want more Reviews? We wrote a free guide to help]

High-Quality Photos

One of the most important aspects of the product description is the photographs. Customers are unable to handle your product before buying it. High-quality images of the product allow the customers to see the product before they buy it. So photos carry a lot of importance in customers’ decision making process.

Poor images reflect on the quality of your business and likely will do more harm than good. So be sure to use images taken with good light and of the highest quality you can make them.  Make sure they are appropriate and display the advantages your product has. If your product has many different aspects, don’t be afraid to include a lot of photos.

In Summary: 4 Essentials to Selling Private Label on Amazon

Amazon is full of competition, but also full of opportunity. Making sure your listing and product stand out can mean the difference between a successful business and failure. Implementing these 4 tips are essential to having a chance of competing selling private label on Amazon.

For more on how to find & sell private label products, read this article.

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by Thomas Pruchinski

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